Pandox (PNDX) Q2 2024 earnings summary

Executive summary

• Achieved profitable growth and strong cash flow in Q2 2024, supported by a seasonally strong hotel market, robust event calendar, and increased international travel.

• Operates as Europe's largest listed pure hotel property owner, with a diversified portfolio across 11 countries, 90 cities, 157 hotels, and 35,000 rooms.

• Both Leases and Own Operations segments delivered good operational performance, with group revenue and NOI up 6% like-for-like year-over-year.

• Double-digit earnings growth, with profit before changes in value up 16% and cash earnings up 10% year-over-year.

• Active value creation through property management, development, portfolio optimization, and sustainability initiatives.

Financial highlights

• Group revenue reached MSEK 1,866 in Q2 2024, up 5% year-over-year; NOI was MSEK 1,125, up 10%.

• EBITDA increased 11% to MSEK 1,082; profit before changes in value was MSEK 597, up 16%.

• Cash earnings rose 10% to MSEK 560; cash earnings per share grew 10% to SEK 3.05.

• EPRA NRV per share increased to SEK 207.7.

• Unrealized property value changes were positive SEK 423 million, driven by increased cash flow.

Outlook and guidance

• Expects continued revenue and RevPAR growth in the hotel market for 2024, supported by strong leisure demand, a full event calendar, and increased international travel.

• Anticipates RevPAR growth in 2025, though Q2 2024 will be a tough comparison due to exceptional events.

• Moderate increase in new hotel capacity expected through 2026, with a window of limited new supply in key markets.